This is a new world, the forum that is. Something I never knew about. Thanks for such an incredible resource. I look forward to learning and contributing. Please excuse my grammar in advance it's never been a strong suit. After running a business for many years I'm at a point where I need to start managing money vs. making it.

My financial picture is messy and I'm hoping to streamline it and cut the fat. The first question I thought of while putting this all to paper I'm probably paying 1% fee on cash reserves sitting at Merrill, Well I hope not.

This is a new world, the forum that is. Something I never knew about. Thanks for such an incredible resource. I look forward to learning and contributing. Please excuse my grammar in advance it's never been a strong suit. After running a business for many years I'm at a point where I need to start managing money vs. making it.You say you have your own business, so you really need some kind of individual IRA. Does you wife work? For your business? You can compare plans here.

You are very short on tax-advantaged space. You might even qualify for IRA or Roth if MAGI is in range. 50 and over can contribute $6500 each. The alternative is non-deductable IRAs. Here are Pros and Cons.

My financial picture is messy and I'm hoping to streamline it and cut the fat. The first question I thought of while putting this all to paper I'm probably paying 1% fee on cash reserves sitting at Merrill, Well I hope not.

My goal is to streamline and maximize my investments. Well, I'm afraid you are correct--this portfolio is definitely messy. Some more questions below.

Questions:

1: I'm considering moving from the Merrill managed to self-directed. 2: Increasing positions in Vanguard 3-4 fundsThis would be a very positive move, but it's going to take some work.

If you were me what would you do or point me in a direction to research and learn

$612k cash liquidated IRA, Broker is working on ETF positions. I want to review before consenting but considering pulling Merrill funds to self-manage<--This has to be your goal. Your expenses and tax losses are far too high.

What do you mean liquidated the IRA? Do you mean you went to all cash, but still in the IRA?

Cash to Invest 300k IRA Acct liquidated from Fidelity<--This is in an IRA currently at Fidelity? I know you are upset with Fidelity, but you should be more upset about Merrill. Fidelity is a still a good place for an IRA as long as you just self manage. Fidelity and Schwab both added index funds with very low expenses in order to compete with Vanguard and I'm guessing they are operating at a loss, but they still have the expensive side for unaware investors. It is our responsibility as individual investors to be knowledgeable and informed. If we aren't then showmanship goes up and costs go up.Money Market 500k, 1%<--You need to get this invested as well. Think of all accounts as one single portfolio. That will help you create the most efficient portfolio you can by minimizing duplication, unnecessary funds, and tax management.

Thanks so much! this is some great information to digest. I believe I'm responding correctly inline with different color.I'll respond to questions in green, read/absorb the rest.

pkcrafter wrote:

Danya wrote:Hello All,

This is a new world, the forum that is. Something I never knew about. Thanks for such an incredible resource. I look forward to learning and contributing. Please excuse my grammar in advance it's never been a strong suit. After running a business for many years I'm at a point where I need to start managing money vs. making it.You say you have your own business, so you really need some kind of individual IRA. Does you wife work? For your business? You can compare plans here.It's rather complicated but 4 years ago started a pension when company began its bell curve down (should have done much earlier). Funded it to the max which is most of the Merrill IRA funds. 2016 dissolved pension distributed assets, winding down company to manage solely, 2017 and forward plan to fund to the max IRA, SEP or whatever is possible. Wife mostly doesn't work. Accountant says to put wife as employee in 2017. Have Vanguard meeting setup for next week to discuss too.

You are very short on tax-advantaged space. You might even qualify for IRA or Roth if MAGI is in range. 50 and over can contribute $6500 each. The alternative is non-deductable IRAs. Here are Pros and Cons.

My financial picture is messy and I'm hoping to streamline it and cut the fat. The first question I thought of while putting this all to paper I'm probably paying 1% fee on cash reserves sitting at Merrill, Well I hope not.

My goal is to streamline and maximize my investments. Well, I'm afraid you are correct--this portfolio is definitely messy. Some more questions below.

Questions:

1: I'm considering moving from the Merrill managed to self-directed. 2: Increasing positions in Vanguard 3-4 fundsThis would be a very positive move, but it's going to take some work.

If you were me what would you do or point me in a direction to research and learn

Merrill 1.14M, Managed1%fee$240k cash Acct Taxable$284k various funds below in CMA Taxable Acct<--You have some very tax-inefficient funds in taxable, which hits a nerve with me. I don't know why people who are supposed to know something about finance put investors in high tax brackets into tax inefficient funds, but we see it all the time! Well, OK, I'll tell you why--they only care about their commissions. Rant over.Thanks for your honesty I was aware but didn't have time. Glad I still have something to work withAMER FUNDS NEWAMERICAN GROWTH FUNDAMERICAN SMALLCAP WORLDAMERICAN CAPITAL WORLDBLACKROCK USBLACKROCK EQTY DIVIDENDBLACKROCK GLOBALCALAMOS GROWTHCALAMOS MARKET NEUTRALDAVIS NEW YORK VENTUREDELAWARE WEALTH BUILDEREATON VANCE LARGE CAPFIRST EAGLEFRANKLIN INCOME FD ADVIVY ENERGY FUND CL IJOHN HANCOCK FDMTL LARGELOOMIS SAYLES BOND FDMAINSTAY LARGE CAPMFS VALUE FD CL INATIXIS GATEWAY FUND CLROYCE PENNSYLVNIA MUTUALTEMPLETON FOREIGN FDTHORNBURG INTERNATIONALTHORNBURG INTERNATIONAL

$612k cash liquidated IRA, Broker is working on ETF positions. I want to review before consenting but considering pulling Merrill funds to self-manage<--This has to be your goal. Your expenses and tax losses are far too high.

What do you mean liquidated the IRA? Do you mean you went to all cash, but still in the IRA?Yes I had the 22 funds sold and it's sitting as cash.Their advisor created the portfolio.

Cash to Invest 300k IRA Acct liquidated from Fidelity<--This is in an IRA currently at Fidelity? I know you are upset with Fidelity, but you should be more upset about Merrill. Fidelity is a still a good place for an IRA as long as you just self manage. Fidelity and Schwab both added index funds with very low expenses in order to compete with Vanguard and I'm guessing they are operating at a loss, but they still have the expensive side for unaware investors. It is our responsibility as individual investors to be knowledgeable and informed. If we aren't then showmanship goes up and costs go up.Yes that's currently 300k IRA in cash at Fidelity. Upset with Fidelity out of principal. With Merrill I knew what they were doing so no one to blame but myself.

Money Market 500k, 1%<--You need to get this invested as well. Think of all accounts as one single portfolio. That will help you create the most efficient portfolio you can by minimizing duplication, unnecessary funds, and tax management. [color=#008040]I've had this sitting aside for sometime to buy more real estate. Can't get financing because on paper I don't make much.Seattle is a tough market right now and considering scrapping that idea.

My secret portfolio would be 60% 500 index ETF, and 40% VG Bond Index (VBILX)as I am not a big fan of International.

Selling your high fee and high risk assets will incur taxes (15%), if that is your goal.Also, at VG their products are commission free. No rush, the market is alittle high priced, but your best alternatives are lower risk/low fee products.

It's rather complicated but 4 years ago started a pension when company began its bell curve down (should have done much earlier). Funded it to the max which is most of the Merrill IRA funds.

You are showing 1.14M at Merrill, but then show 510k so that's a little confusing. You also say

2016 dissolved pension distributed assets,

Are you saying you removed a lot of money from a tax-deferred account to taxable?

Paul

It's still in the tax deferred account but the pension assets had to be distributed to participants (employees, owner)My mistake at Merrill there is Merrill 1.14M, Managed 1%fee$240k cash Taxable Acct$284k CMA Taxable Acct$612k IRA Acct , the IRA is all in cash now.corrected above.

And 500k Money Market 1%. Put in play after the taxable and IRA is dealt with.

_____________________________________________________________________Regarding question of Asset Allocation; get advice here, from Vanguard advisor in a week. and from what I've researched I should be about 75%/25%

Would you consider real estate equity in the picture? Say at 4.5M equity with cash flow of 240k yr.And if splitting between two Fidelity and Vanguard should I pick similar funds in each so the model matches?

Best to talk it over with a trusted Vanguard Group advisor. Then go from there!My 60/40 AA would be tax Managed Capital Appreciation fund. A large Cap growth fund and a value fund. Then tax exempt Limited, intermediate and a long term state tax exempt fund. Maybe some total bond index too if your tax rate is low. All taxable bonds in the DCP(s).

SeeMoe..

"By gnawing through a dike, even a Rat can destroy a nation ." {Edmund Burke}

I would make a spreadsheet with the basis and current price of each fund that is in a taxable account. This helps you know, from a tax view, where to begin to reduce the number of funds. It may take a while to unwind those.

I would immediately stop automatic reinvestment of dividends in the taxable account. This would eventually eliminate the possibility of short-term capital gains.

trueblueky wrote:I would make a spreadsheet with the basis and current price of each fund that is in a taxable account. This helps you know, from a tax view, where to begin to reduce the number of funds. It may take a while to unwind those.

I would immediately stop automatic reinvestment of dividends in the taxable account. This would eventually eliminate the possibility of short-term capital gains.